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Supreme Court of India 2021-03-10 allowed

Kalpraj Dharamshi & Anr vs Kotak Investment Advisors Ltd. & Anr

Bench: 3 — B.R. Gavai, A.M. Khanwilkar, Aniruddha Bose

In Brief

The Supreme Court upheld the approval of Kalpraj's resolution plan for Ricoh India Limited's insolvency. KIAL challenged the plan's acceptance despite being submitted after the deadline. The Court held: (1) KIAL's appeal delay was excused under Section 14 principles, as it bona fide pursued a writ petition before the High Court challenging procedural breaches. (2) KIAL did not waive rights by submitting revised plans—it objected immediately and was coerced to participate. (3) Critically, NCLAT erred in interfering with the Committee of Creditors' commercial decision approving Kalpraj's plan by 84.36% majority. Courts cannot review CoC's commercial wisdom except on narrow statutory grounds (Sections 30(2) and 61(3) of the I&B Code). The appeals were allowed, setting aside NCLAT's order and restoring NCLT's approval of Kalpraj's plan.

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Insolvency and Bankruptcy Code Corporate Insolvency Resolution Process Limitation Act Waiver and Estoppel Committee of Creditors Commercial Wisdom Judicial Review Judicial Procedure Natural Justice Contract Law

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